Thursday, August 15, 2013

The Support Is Gone On the S&P 500, Next Stop $1,556

Just looking at the chart of the SPY (S&P 500 Spider ETF) and noticed that the market has broken an apparent support level at the $167 level. The price point was initially tested a few time back in may, but retested and broken in July 11th and 12th trading, mind you on volume turnover between 104 and 135 million shares. See the chart below.

Today's trading is on track to post between 175 million to 200 million shares (as of this writing, told you it would change) exchanging hands. The broken support on volume suggests that the S&P 500 will move to the next volume support, which lies in or around the $155 to $157 price range.

About Me

I am an investment analyst, portfolio manager, and CFA Chartholder that has worked on both the buy side and sell side in various roles including analyst, portfolio manager, and trader. I have over ten years of experience in the investment industry and characterize my investment style as having a leaning towards value. This blog will track my (and potentially guest author) opinions, managed portfolios, and investment ideas.